No Money to Be a Property Developer? Here's How to Start

Starting out in property development can seem like an impossible dream, especially if you don’t have six figures in savings or the desire to tie yourself down to a 30-year mortgage.

But what if I told you there’s a way to get started without needing a huge chunk of capital upfront?

 

Start by Building Relationships with Money Partners

The truth is, many people have substantial savings but are dissatisfied with the low returns from their bank accounts.

They might not understand the stock market, or they simply don’t want to deal with the hands-on aspects of real estate investment.

That’s where you come in.

 

By partnering with these individuals, you can use their funds to finance your property development projects, in return for an agreed share of the profit or an agreed rate of interest. Any return depends on the project, and money partners carry real risk, so a return is never something to promise.

But how do you go about convincing strangers to trust you with their money?

 

The Key Is in the Approach

When reaching out to potential money partners, the goal isn’t to ask for money directly. Instead, position your inquiry as a valuable opportunity:

“I’m working on a small property development and talking to people who might want to be involved as a money partner. Do you know anyone who’d like to hear more?”

It’s a low-pressure way to start the conversation. You’re not directly asking for their money; you’re asking if they know someone who might be interested.

Never promise a guaranteed return or quote a profit figure to win someone over. Raising money from other people is regulated in Australia, and what you can offer, and to whom, depends on how the arrangement is structured. Get legal and accounting advice on the structure before you accept anyone’s money.

 

The Three Possible Outcomes

1. They say they don’t know anyone – In this case, you’ve lost nothing and can move on to the next person.
2. They say they know someone – You ask for an introduction and potentially gain a new money partner.
3. They express interest in themselves – Congratulations! You’ve just secured a partner for your project.

 

It's All About Numbers and Building Trust

Yes, this process is a numbers game.

The more people you talk to, the higher your chances of finding money partners.

As you complete more projects successfully, you build trust and a reputation in the field.

Eventually, these money partners will start approaching you, because they’ve seen how you run a project and protect the downside.

 

Facing the Fear of Asking for Money

Asking strangers for money can be daunting, but consider the alternative.

Would you rather stay stuck in a 9-to-5 job that offers no freedom, miss out on family time and vacations, and live paycheck to paycheck until retirement?

Or would you rather spend a few months building your network and creating opportunities for financial freedom?

 

Take the First Step

The first step is simple: join a local property group like the Rising Star Developer Inner Circle and start building connections.

You’ll be surprised at how quickly you can create opportunities by expanding your network and presenting your projects as a win-win for everyone involved.

So, what’s holding you back? 

Start connecting with potential money partners today, and take the first step towards your property development dreams.

 

Let our Success Coach help you work out if this strategy is right for you. Click here to book your first FREE Action Takers Success Call with us!

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